Merchandise Exports from India Scheme & Services Exports from India Scheme
The above incentive schemes were introduced to compensate Indian Exporters for lack of basic infrastructure in the country and other bottlenecks. An incentive is given to exporters which range from 2% to 7% of the FOB value of exported goods and services.
The incentive is not given in cash but in the form of “Scripts” commodity called “Duty Credit Scripts”. These scripts are then used for payment of customs duty. Moreover, they are transferable, so exporters can either utilize the scripts for payment of custom duty on their imports or sell the scripts to other importers.
For example, on a shipment of Carpets worth Rs. 1,00,00,000 (Rupee One Crore) an exporter would get script worth Rs. 7,00,000 (Rupees Seven Lacs) @ 7% of FOB value realized. This amount can then be used for the payment of custom duty by Exporter or he can sell the scripts at the privilege value. Normally Duty Credit Scripts can sold at a discount of 2-3% of face value.
Issue of scripts :
-An application for issue of scripts is made to the Jurisdiction Regional Office of the DGFT.
-Customs transmit the Shipping Bills on the DGFT Server.
-Bank transmit the E-BRC on the DGFT Server.
-Based on these two documents, an application for issue of MEIS or SEIS is prepared and submitted to the respective DGFT office.
-DGFT office checks the application and generally issue the licenses within 2-3 working days. A query letter may be issued if the office required some clarification.
We at Pahwa Impex (P) Ltd can handle all your credit script/s related tasks such as applying to the DGFT office, handling queries, buying and selling scripts.